ConneXionONE Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing significant changes in its financial position compared to the previous fiscal period. The company, which focuses on developing a decentralized social media platform, has not generated any revenue during this period.

As of September 30, 2024, total current assets were $264, a substantial decrease from $442,725 as of December 31, 2023. Total assets increased to $647,264 from $442,725, while total liabilities rose to $2,636,271 from $2,143,472, resulting in a total stockholders' deficit of $(1,989,007), up from $(1,700,747) at the end of 2023.

Operating expenses for the three months ended September 30, 2024, were $116,997, a significant reduction from $627,966 in the same quarter of 2023. For the nine months ended September 30, 2024, operating expenses totaled $288,260, down from $678,949 in the prior year. The decrease in operating expenses was attributed to reduced general and administrative costs, despite an increase in professional fees, which rose to $51,592 in Q3 2024 from $21,246 in Q3 2023.

The net loss for the three months ended September 30, 2024, was $(116,997), a notable improvement from $(627,966) in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $(288,260), compared to $(678,949) for the same period in 2023. Loss per share for Q3 2024 was $(0.002), down from $(0.009) in Q3 2023.

Cash and cash equivalents at the end of the reporting period were $264, down from $834 a year earlier. The company reported net cash used in operating activities of $(318,083) for the nine months ended September 30, 2024, compared to $(124,699) for the same period in 2023. However, net cash provided by financing activities increased significantly to $522,622 from $(182,501) in the previous year, primarily due to advances from related parties.

ConneXionONE Corp. has also faced challenges with its internal controls, identifying a material weakness in financial reporting due to insufficient accounting expertise and inadequate supervisory review structures. The company plans to engage third-party accounting consulting services to address these issues.

Overall, while ConneXionONE Corp. has made strides in reducing its operating expenses and net losses, it continues to face significant financial challenges and has yet to generate revenue from its business operations.